Kimco Parts Ways With $299 Million To Buy Out JV Partner

Kimco Realty Corp. (NYSE: KIM) has relieved its joint-venture partner, Canada Pension Plan Investment Board, of the remaining 45-percent ownership interest in two South Florida shopping centers for a gross purchase price of $299.2 million, including the assumption of $100 million in existing mortgage debt.
Located in Hollywood, the Oakwood Plaza shopping center and the adjacent Dania Pointe development project sit along heavily-traveled I-95, featuring nearly two miles of freeway frontage to approximately 260,000 cars per day, adjacent to the Fort Lauderdale – Hollywood International Airport and the Port Everglades international cruise port, which together see almost 28.4 million annual passengers.
Oakwood Plaza is a 900,000-square-foot, open-air retail center built in the mid-1990s that is fully occupied by a mix of national tenants including Home Depot, Marshalls, HomeGoods, Ross, Michaels, PetSmart, BJs and Regal Cinemas. The purchase price was $215 million on the center, which is secured by the $100 million loan.
Dania Pointe is a 102-acre, proposed mixed-use, ground-up development that will feature 900,000 square feet of retail and restaurant space when completed, in addition to 1,000 luxury homes, two hotels totaling 300 guest rooms, and two office towers. Phase I will include a traditional 318,000-square-foot power center, with construction expected to begin in fall 2016. Phase II will offer a lifestyle center featuring 575,000 square feet of main-street retail space in addition to the residential and office space, with an anticipated start date at the end of 2017.
Kimco’s stated 2020 Vision has the real estate investment trust owning large, high-quality, high-performing assets in major metros across the U.S. while reducing its joint-venture and foreign holdings. The company has continued its net selling and accumulation of capital including the disposition of seven Canadian centers totaling 1.7 million square feet for US$322.9 million, for which it realized $155.3 million in net proceeds including $57.5 million from the assumption of $119.7 million in existing mortgage debt on the centers. In addition, Kimco saw the sale of six U.S. centers in the first quarter totaling 767,000 square feet for $107.6 million ($103.7 million to Kimco) and four land parcels for $6.1 million, while acquiring the remaining 50-percent interest in the Owings Mills Mall in suburban Baltimore, MD.
Both parties reportedly handled the direct sales in-house.
 
Source:  CoStar